Dongfeng Motor: Targeting sales of 1M each of CVs, own-brand cars, and NEVs by 2025

Divesting from stagnant JVs, accelerating CASE, and transforming into a high-tech company




 Dongfeng Motor Corporation (DFMC) sold 3,194,000 vehicles in 2021, making it the third-largest automaker in the Chinese market. The breakdown is 2,529,000 passenger cars and 665,000 commercial vehicles. The volumes of own-brand vehicle sales and joint venture brand sales, including both Chinese and foreign joint ventures, was around 1,039,000 units and 2,155,000 units, respectively.

 DFMC is a large, state-owned Chinese automobile manufacturer, and its subsidiary, Dongfeng Motor Group Co., Ltd. (DFMG), is listed on the Hong Kong Stock Exchange. The company has three commercial vehicle brands: Dongfeng, Chenglong, and Vasol, and its own-brand passenger cars include Dongfeng Aeolus, Dongfeng Forthing, and its premium EV brand, Voyah. DFMC also plans to launch a high-end electric off-road brand. In addition, it is developing its passenger car business through joint ventures with foreign companies such as Nissan, Honda, and Stellantis. In recent years, the dissolution of Dongfeng Renault, the bankruptcy of Dongfeng Yulon, and the withdrawal of Dongfeng Yueda Kia have accelerated the separation of underperforming joint ventures, and the company continues to reorganize its subsidiaries.

 During the period of its 14th Five-Year Plan (2021-2025), DFMC aims to sell more than 1 million units each of commercial vehicles, own-brand passenger cars, and New Energy Vehicles (NEVs), and to capture a market share of more than 16%. The company will invest CNY 100 billion in R&D to electrify all new models of its main passenger car brands by 2024. In addition, DFMC will build a “vehicle business + high-tech sector + ecosystem service” business to accelerate the transformation into a high-tech company.

(Note: MarkLines passenger car sales figures used in this report refer to sedans, SUVs, and MPVs. Vehicle data rounded off to the nearest thousand units)

Related reports:
2022 H1 China market: Sales Down to 12.05 Million Units, but NEVs Up 2.2 Times to 2.6 Million Units (Aug. 2022)
Chinese Market Q2 2022: Chinese Automakers Focus on Improving Production Systems for Drive Batteries (Jul. 2022)
Chinese Market Q1 2022 (2): Major non-Chinese OEMs restructure joint ventures and localize R&D (May. 2022)
Chinese Market Q1 2022 (1): SAIC, FAW, BYD, etc. accelerate development in battery and energy fields (May. 2022)
SAE China 2021 (3): China Truck Technology Conference (Dec. 2021)
Auto Shanghai 2021: SAIC, Dongfeng, FAW (May. 2021)
Dongfeng Motor: CASE alliance with FAW and Changan, and aggressive expansion into Africa (Jan. 2020)

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